In December of 2019, Congress passed the SECURE Act. The Act has changed the age that retirees are required to take their minimum distributions from 70 ½ to age 72 for those who reach age 70 ½ after December 31, 2019. However, no changes have occurred to the minimum age a donor must be to make a charitable IRA rollover gift, which continues to be age 70 ½. For inherited IRAs, the Act removes the "stretch IRA" provision, which allowed an individual who inherits an IRA to stretch the taxation of their IRA over their lifetimes. Now, those individuals must pay the taxes on their inherited IRA in 10 years. One option to discuss with a professional advisor to effectively restore this tax advantage is to name a testamentary charitable remainder unitrust as the beneficiary of the IRA, and name the IRA recipient as an income beneficiary to the trust.

For more information on the SECURE Act, click here for a printable brochure.

If you have questions about the SECURE Act or charitable gift planning in support of Rice, please visit giftplan.rice.edu, call us at 713-348-4624, or email us at giftplan@rice.edu.